VARIETY REDUCTION
· is nothing but standardization of items/materials.
· The basic purpose of standardization is to eliminate diversity among items/materials that serve the same purpose and to attain a high degree of uniformity in the manufacture.
· is a rationalization of the number of items to be stocked. It achieves by elimination of non-standard and non-rationalized sizes/designs whose demand is very small.
· enables few items will be purchased in large quantities.
· It is an essential requirement to any modern mass production economy such as Indian Railways.
ADVANTAGES:
1. Reducing the Unit cost, because few items will be purchased in large quantities.
2. Reducing the inventory carrying cost.
3. Will root out the unneeded and duplicate items.
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